Nigeria’s headline inflation rate dropped to 20.12% in August 2025, marking its fifth consecutive month of decline from 21.88% in July, according to the National Bureau of Statistics (NBS). The slowdown, indicating a lower rate of price increases, has fueled calls from economic experts for the Central Bank of Nigeria (CBN) to reduce the Monetary Policy Rate (MPR) to stimulate investment, though public skepticism persists over its impact on living costs.
Dr. Muda Yusuf, CEO of the Centre for the Promotion of Private Enterprise, hailed the trend as a sign of growing economic stability, reflecting adjustments to government reforms. Speaking to Nairametrics, he urged a review of the CBN’s tight monetary policy, noting that the current 27.5% MPR burdens investors with high borrowing costs. “Easing rates would boost production and investment,” Yusuf said, advocating for targeted fiscal and monetary policies to address the high cost of living, as declining inflation does not equate to lower prices.
Economic analyst Dr. Ango Malari echoed the call for an MPR reduction to enhance investor confidence but expressed concern over persistent food inflation. Analyst Idika Aja noted that, despite slower price rises, many Nigerians continue to face hardships due to diminished purchasing power, requiring higher wages to afford essentials.
Social media reactions revealed widespread frustration. Users like Williams (@willie_fied) questioned the NBS data, alleging manipulation to favor political narratives, while Atobajaye (@Atobajaye25) dismissed the reported inflation drop, citing unchanged living costs. Others, like OPEOLUWA (@OpeBee), welcomed the trend and urged the CBN to lower rates, targeting a 15% inflation rate by year-end. However, concerns about pre-election spending disrupting progress were raised by Dr. Toks (@fimiletoks).
CBN Governor Olayemi Cardoso projected further declines in interest rates, citing improved capital allocation and easing inflation. At the July 2025 Monetary Policy Committee meeting, the MPR was maintained at 27.5%. With Nigeria’s economy showing signs of stabilization, experts emphasize the need for policies addressing food and transportation costs to ensure broader relief for citizens amidst ongoing economic reforms.
